RIL, Sun TV, India Cements: Are IPL franchisee stocks worth your money?

Reliance Industries' chart seems to predict 14% upside

The IPL Media Rights Auction, which generated bids worth record Rs 48,400 crore, has put the spotlight back on one of the world's biggest cricket tournaments. And now, listed companies and team owners such as Reliance Industries (Mumbai Indians), United Spirits Royal Challengers bangalore), Sun TV (Sunrisers Hyderabad), and India Cements (Chennai Super Kings) may be eyeing selling a part of their stake in the companies.

Other listed owners include GMR Infrastructure and JSW Steel (Delhi Capitals), and RPSG Ventures (Lucknow Super Gaints).

According to a Business Standard report, analysts are predicting that the teams' net profit would increase to Rs 270 crore to Rs 300 crore from the present Rs 100 to Rs 125 crore, thus leading to higher valuations.

Analysts said the valuations of RCB (owned by United Spirits), SRH (Sun TV) and CSK (India Cements) could increase to Rs 7,500 crore to Rs 9,000 crore given improved economics. READ MORE

Against this backdrop, let's check the outlook of these listed IPL team-owners:
 

India Cements Ltd (INDIACEM)

Outlook: Chart structure depicts weakness

The shares of India Cements have tumbled 40 per cent, so far, during the current calendar year. This decline broke the neckline support of the "Head and Shoulder" pattern, placed at Rs 180, on the weekly chart, suggesting a bearish trend. Moreover, prospects of any reversal appear to have narrowed. The immediate support comes at Rs 140, the major breakout mark of 2020. CLICK HERE FOR THE CHART

Reliance Industries Ltd (RELIANCE)

Likely target: Rs 3,200

Upside potential: 14%

The broader outlook for Reliance Industries continues to stay bullish with "Rising Channel" pattern regaining momentum after Covid-19 massacre, as per the weekly set-up. The next breakout could happen once the stock surpasses Rs 2,800-mark; after which the rally could see furious move towards Rs 3,200 levels. The immediate support comes at Rs 2,400, while the medium-term support is at Rs 2,180 mark. CLICK HERE FOR THE CHART

Sun TV Network Ltd (SUNTV)

Outlook: Needs to cross Rs 450 levels.

While the price action of Sun TV network remains sluggish, the breakout support of Rs 400 is managing to hold the downside bias, shows the weekly chart. Thus, as long as this support mark is defended, the counter could build certain base and might see an up move. The resistance comes at Rs 450 levels. CLICK HERE FOR THE CHART

United Spirits Ltd (MCDOWELL-N)

Outlook: Death cross could mean medium-term bearishness

The stock has formed a "Death Cross", according to the daily chart, and could see a major decline if it loses momentum beneath Rs 750-mark. The next support comes at Rs 700 levels, which is its 100-weekly moving average (WMA). The stock can slip even further upon breakdown. CLICK HERE FOR THE CHART

GMR Infrastructure Ltd (GMRINFRA)

Outlook: Support is at Rs 32

The stock has constantly failed to sustain over 200-day moving average (DMA). Given this, the price action seems to have lost an upward bias, shows the daily chart. That said, as long as the stock upholds the support of Rs 32, it can revive and make an attempt to conquer its 200-DMA hurdle, placed at Rs 39.. CLICK HERE FOR THE CHART

JSW Steel Ltd (JSWSTEEL)

Outlook: Trades with a positive bias

At present, the stock is on the verge to cross the gap-down hurdle of Rs 631 to Rs 594, with the Relative Strength Index (RSI) holding above the oversold territory. The support is at Rs 550, and any breach of this support could trigger fresh sell-off. The chart structure is not appealing as volumes have remained lethargic, shows the daily chart. CLICK HERE FOR THE CHART

RPSG Ventures Ltd (RPSGVENT)

Likely target: Rs 685 (after breaking out above Rs 600)

Upside potential: 14%

While this stock has a low volume structure, the breakout over Rs 600 of "Inverse Head and Shoulder" pattern could see a rally towards Rs 685 levels. As of now, the support stays at Rs 500 levels, as per the daily chart. CLICK HERE FOR THE CHART